DATE: July 9, 2008
The biggest monthly fall in the number of home loans approvals in eight years suggests the Reserve Bank of Australia (RBA) may be succeeding in its bid to slow the economy and push inflation down.Finance approvals for owner-occupied housing declined for the fourth straight month in May, down 7.9 per cent, seasonally adjusted.
Approvals have dropped 25 per cent over the past four months, a move CommSec chief equities economist Craig James said was unequalled in almost 30 years of records.
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COMMENT: This story suggests that there may be some competition returning to the building industry and home builders (those who can still afford to build) may well find themselves in a stronger position.
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